The Ministry of Labour and Employment has increased the Employees’ Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000, widening the scope of mandatory social security coverage for a large number of organised sector employees. The revised wage ceiling that came into effect on September 17, 2026, will many employees joining the EPF, the Employees’ Pension Scheme (EPS) and the Employees’ Linked Deposit Scheme (EDLI), as they will now come under the mandatory coverage threshold, subject to the applicable EPF rules.
However, the majority of them are still confused about their and their employer’s monthly contribution into the EPF, EPS and the EDLI schemes.
Also read: EPF wage ceiling history: How ₹300 became ₹25,000 and what it means for your salary
The government, in a Frequently Asked Question (FAQ) available on the Employees’ Provident Fund Organisation (EPFO) website, has revealed the monthly contribution from the employee and the employer’s side into the employee’s EPF, EPS and the EDLI corpuses. Monthly basic salaries that the government has taken into account to reveal the contributions to all three schemes are Rs 15,000, Rs 20,000, Rs 25,000 and Rs 35,000.
EPF vs EPS vs EDLI: Employee vs Employer contributions under new wage ceiling
| Monthly PF Wages (Basic + DA) | Employee Share: EPF (12%) | Employer Share: EPS (8.33%) | Employer Share: EPF (3.67%) | EDLI Contribution (0.5%) | EPF Admin Charges (0.5%) |
| ₹ 10,000 | ₹ 1,200 | ₹ 833 | ₹ 367 | ₹ 50 | ₹ 50 |
| ₹15,000 (Old Cap) | ₹ 1,800 | ₹ 1,250 | ₹ 550 | ₹ 75 | ₹ 75 |
| ₹20,000 (New Bracket) | ₹ 2,400 | ₹ 1,666 | ₹ 734 | ₹ 100 | ₹ 100 |
| ₹25,000 (New Cap) | ₹ 3,000 | ₹ 2,083 | ₹ 917 | ₹ 125 | ₹ 125 |
| ₹35,000 (Above Cap) | ₹ 3,000 | ₹0* | ₹3,000 (@12%) | ₹ 125 | ₹ 125 |
Source: EPFO
*The membership of the EPS is available only to such employees whose wages as on the date of joining or as on the date of implementation of the new wage ceiling, do not exceed the wage ceiling (i.e., Rs 25,000 per month w.e.f. September 17, 2026).
How much EPF contribution will be deducted from your salary?
For employees covered under the new wage ceiling, the employee’s EPF contribution is calculated at 12% of PF wages, which generally means basic wages plus dearness allowance.
For example, if your monthly basic salary is Rs 20,000, your EPF contribution at 12% would be Rs 2,400.
At Rs 25,000, the employee EPF contribution would be Rs 3,000 a month.
This amount is deducted from the employee's salary and credited towards the EPF.
Will employees earning between Rs 15,000 and Rs 25,000 become eligible for EPFO coverage?
Yes. The principal effect of the revision is to extend the mandatory coverage threshold from Rs 15,000 to Rs 25,000 per month, bringing eligible employees in this wage range within the expanded statutory coverage. For example, an employee joining today at a monthly wage of Rs 20,000 is currently outside the EPF and EPS system; under the revised ceiling, such an employee would be required to be enrolled in both, creating a more robust social-security safety net for the employee and their family
